Via ODiSy March 22, 2012 PHILIPPINE STOCK EXCHANGE ... - BDO

BDO UNIBANK, INC. AND SUBSIDIARIES(Formerly Banco De Oro Unibank, Inc. and Subsidiaries)NOTES TO FINANCIAL STATEMENTSDECEMBER 31, 2011, 2010 AND 2009(Amounts in Millions of Philippine Pesos, Except Per Share Data or As Indicated)1. CORPORATE MATTERS1.01 Incorporation and OperationsBDO Unibank, Inc. (formerly Banco de Oro Unibank, Inc., the Bank, BDO Unibankor the Parent Bank) was incorporated in the Philippines on August 16, 1967 to engagein the business of banking. It was authorized to engage in trust operations onJanuary 5, 1988 and in foreign currency deposit operations on November 23, 1990.The Bangko Sentral ng Pilipinas (BSP) granted approval to the Parent Bank to operateas an expanded commercial bank on August 5, 1996. The Parent Bank commencedoperations as such in September of the same year. The Parent Bank and its subsidiaries(collectively referred to as the BDO Unibank Group) offer a wide range of commercial,investment, private and other banking services. These services include traditional loanand deposit products, as well as treasury, asset management, realty management, leasingand finance, remittance, trade services, retail cash cards, insurance, credit card services,stockbrokerage, trust and others.On January 29, 2011, the Parent Bank’s Board of Directors (BOD) approved thechange in the Bank registered name from Banco De Oro Unibank, Inc. to BDOUnibank, Inc. The change in the Bank’s registered name was approved by thePhilippine Securities and Exchange Commission (SEC) on November 4, 2011.As a banking institution, the BDO Unibank Group’s operations are regulated andsupervised by the BSP. In this regard, the BDO Unibank Group is required to complywith the rules and regulations of the BSP such as those relating to maintenance ofreserve requirements on deposit liabilities and deposit substitutes and those relating tothe adoption and use of safe and sound banking practices, among others, aspromulgated by the BSP. BDO Unibank Group is subject to the provisions of theGeneral Banking Law of 2000 [Republic Act (RA) No. 8791].The Parent Bank’s common shares are listed in the Philippine Stock Exchange (PSE).As of December 31, 2011, the Parent Bank has 744 branches (including one foreignbranch) and 934 on-site and 662 off-site automated teller machines. The Parent Bank’sregistered address is at BDO Corporate Center, 7899 Makati Avenue, Makati City.The BDO Unibank Group operates mainly within the Philippines with a bankingbranch in Hong Kong and various remittance subsidiaries operating in Asia, Europeand the United States. In 2011, 2010 and 2009, these foreign operations accounted for0.5%, 0.4% and 1.0%, respectively, of the BDO Unibank Group’s total revenues and1.1%, 0.1% and 1.1%, respectively, of the BDO Unibank Group’s total resources. TheBDO Unibank Group’s subsidiaries and associates are shown in Note 13.01.